1 00:00:02,520 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,720 --> 00:00:12,560 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,400 --> 00:00:18,520 Speaker 3: Now let's look at some of the individual stocks on 5 00:00:18,600 --> 00:00:20,960 Speaker 3: the move today here in Europe. I'm Caroline Hepkett and 6 00:00:21,000 --> 00:00:24,160 Speaker 3: I'm joined by Blueberg reporter of Chloe Malay. Chloe, good morning, 7 00:00:24,280 --> 00:00:28,360 Speaker 3: Good morning. So the French market doing very very well 8 00:00:28,480 --> 00:00:32,840 Speaker 3: thanks to a bit more political optimism. I mean, let's 9 00:00:32,840 --> 00:00:34,800 Speaker 3: see how long it lasts, but at least for now, 10 00:00:34,880 --> 00:00:39,160 Speaker 3: the French names up and LVMH in particular is up. 11 00:00:39,400 --> 00:00:40,000 Speaker 3: Tell us more. 12 00:00:40,120 --> 00:00:43,159 Speaker 1: Yeah, LVMH is up, and the broader luxury sector is 13 00:00:43,280 --> 00:00:45,600 Speaker 1: up this morning on hopes that it might be turning 14 00:00:45,640 --> 00:00:47,920 Speaker 1: a corner. So LVM matrix is obviously very much a 15 00:00:47,920 --> 00:00:51,200 Speaker 1: bell weather for that industry. Had sales return to growth 16 00:00:51,240 --> 00:00:54,080 Speaker 1: in the third quarter, which was a positive surprise given 17 00:00:54,120 --> 00:00:58,080 Speaker 1: expectations of a continued decline after a couple of tough quarters. 18 00:00:58,080 --> 00:01:02,800 Speaker 1: For LVMH, sales at all divisions actually exceeded estimates, including 19 00:01:02,840 --> 00:01:05,720 Speaker 1: the Fashion and Leather Goods unit, which is the most 20 00:01:05,760 --> 00:01:08,640 Speaker 1: important one, and even the Wines and Spirit division, which 21 00:01:08,720 --> 00:01:12,000 Speaker 1: was struggling for a while, also posted revenue growth. It's 22 00:01:12,000 --> 00:01:14,600 Speaker 1: also worth noting that sells in a China in the 23 00:01:14,640 --> 00:01:17,360 Speaker 1: region that includes China rowse two percent, which is a 24 00:01:17,360 --> 00:01:19,640 Speaker 1: big turn around for a region that has seen so 25 00:01:19,760 --> 00:01:22,080 Speaker 1: much weakness as well over the last couple of years. 26 00:01:22,319 --> 00:01:24,480 Speaker 1: So Alyssa saying that this is really a step in 27 00:01:24,520 --> 00:01:27,560 Speaker 1: the right direction for both LVMH and that kind of 28 00:01:27,800 --> 00:01:30,920 Speaker 1: wider luxury sector and showing maybe that the slowdown in 29 00:01:31,000 --> 00:01:33,440 Speaker 1: luxury demand might be easing a little bit and that 30 00:01:33,520 --> 00:01:35,960 Speaker 1: a pick up in China in particular might be on 31 00:01:36,000 --> 00:01:38,800 Speaker 1: the horizon. So we saw other massive jumps in other 32 00:01:38,880 --> 00:01:41,640 Speaker 1: luxury names like carrying at Amez Christian Diure that you 33 00:01:41,720 --> 00:01:44,640 Speaker 1: mentioned as well. So we'll see if this materializes as 34 00:01:44,720 --> 00:01:47,319 Speaker 1: kind of a sector wide story when we get more 35 00:01:47,319 --> 00:01:49,320 Speaker 1: earnings coming through the next few weeks. 36 00:01:49,400 --> 00:01:51,520 Speaker 3: Yeah, that's going to be a very busy time, isn't it. 37 00:01:51,560 --> 00:01:54,600 Speaker 3: The cat carn't overall though up by the most since 38 00:01:54,680 --> 00:01:58,400 Speaker 3: at least may overall up by two point four percent 39 00:01:58,480 --> 00:02:01,880 Speaker 3: this morning. I mean that's also partly so it's idiosyncratics 40 00:02:01,880 --> 00:02:04,400 Speaker 3: to do those individual names. It is also with the 41 00:02:04,520 --> 00:02:07,440 Speaker 3: core new the Prime Minister getting the backing of the 42 00:02:07,440 --> 00:02:10,080 Speaker 3: Socialists and maybe being able to get through at least 43 00:02:10,120 --> 00:02:13,720 Speaker 3: the next immediate political hurdle of these two no confidence 44 00:02:13,800 --> 00:02:19,000 Speaker 3: votes tomorrow. We've also been looking at the orders for 45 00:02:19,080 --> 00:02:22,119 Speaker 3: the Dutch chip equipment maker ASML. This is the other 46 00:02:22,320 --> 00:02:25,200 Speaker 3: hugely important part of the market story at the moment. 47 00:02:25,360 --> 00:02:28,440 Speaker 1: Yeah, absolutely, so, expectations were very high going to the 48 00:02:28,480 --> 00:02:31,360 Speaker 1: earnings for ASML. We had seen a really massive rally 49 00:02:31,400 --> 00:02:33,840 Speaker 1: in the shares over the last month or so and 50 00:02:33,919 --> 00:02:36,480 Speaker 1: by and large ASML delivered so orders, as you mentioned, 51 00:02:36,520 --> 00:02:39,480 Speaker 1: be expectations in a third quarter that was driven by 52 00:02:39,520 --> 00:02:42,240 Speaker 1: massive investments in AI that kind of lead to growing 53 00:02:42,280 --> 00:02:45,239 Speaker 1: demand for the chip making machines. The boom in AI 54 00:02:45,280 --> 00:02:47,800 Speaker 1: spanding is a direct boost for SML because it is 55 00:02:47,840 --> 00:02:51,280 Speaker 1: the only only company that makes the very specific machines 56 00:02:51,320 --> 00:02:54,160 Speaker 1: that are needed to produce the most sophisticated chip. So 57 00:02:54,200 --> 00:02:56,840 Speaker 1: it's a very positive update and we can see that 58 00:02:56,880 --> 00:02:59,640 Speaker 1: reflected in the shares this morning. There is one tougher spot, 59 00:02:59,639 --> 00:03:03,720 Speaker 1: which is at China. The outlook for twenty twenty six 60 00:03:03,760 --> 00:03:06,600 Speaker 1: in general is cautious because sales to China are expected 61 00:03:06,639 --> 00:03:09,760 Speaker 1: to decrease significantly in twenty twenty six, and that has 62 00:03:09,800 --> 00:03:12,360 Speaker 1: to do with ASML being hit by those restrictions on 63 00:03:12,400 --> 00:03:14,960 Speaker 1: what it can sell to China, given that the US 64 00:03:15,040 --> 00:03:17,320 Speaker 1: is trying to kind of rain in the chip industry 65 00:03:17,360 --> 00:03:20,080 Speaker 1: there because it sees it as a threat to national security. 66 00:03:20,320 --> 00:03:23,000 Speaker 1: So there will be disruptions for SML coming from that 67 00:03:23,080 --> 00:03:24,280 Speaker 1: to watch out for as well. 68 00:03:24,400 --> 00:03:28,200 Speaker 3: Okay, Silantis and a big plan to expand in the US. 69 00:03:28,560 --> 00:03:31,320 Speaker 1: Yeah, we'll invest thirteen billion dollars in the US over 70 00:03:31,360 --> 00:03:33,600 Speaker 1: the next four years, so it will try it'll do 71 00:03:33,720 --> 00:03:35,320 Speaker 1: that to kind of try and curb the impact of 72 00:03:35,360 --> 00:03:38,760 Speaker 1: tariffs and reinforce its presence in the US market. This 73 00:03:38,880 --> 00:03:42,160 Speaker 1: investment was expected. Bloomberg had reported earlier this month that 74 00:03:42,160 --> 00:03:45,440 Speaker 1: Silantis was set to announce an investment of about ten 75 00:03:45,440 --> 00:03:48,160 Speaker 1: billion dollars. This is the confirmation and this is really 76 00:03:48,240 --> 00:03:51,280 Speaker 1: driving the shares up this morning. It's quite an ambitious 77 00:03:51,320 --> 00:03:54,640 Speaker 1: attempt by Silantis to try and rebuild a really struggling 78 00:03:54,680 --> 00:03:57,640 Speaker 1: business in the US. The previous management to kind of 79 00:03:57,840 --> 00:04:01,560 Speaker 1: prioritize investments in Europe and moved manufacturing to Mexico. So 80 00:04:01,600 --> 00:04:03,800 Speaker 1: now we see a big strategy shift back to the 81 00:04:03,880 --> 00:04:06,480 Speaker 1: US with US build products and trying to appeal to 82 00:04:06,640 --> 00:04:09,640 Speaker 1: US consumers. So the plan is to introduce five new 83 00:04:09,680 --> 00:04:12,040 Speaker 1: models over those next four years and to try and 84 00:04:12,080 --> 00:04:15,760 Speaker 1: get Americans to buy is Jeep SUVs again. So let's 85 00:04:15,800 --> 00:04:17,680 Speaker 1: see if it works. In any case, Unions in the 86 00:04:17,760 --> 00:04:20,360 Speaker 1: US are very happy for what it means for work, 87 00:04:20,360 --> 00:04:24,160 Speaker 1: as we're talking about five thousand factory jobs, so quite significant. 88 00:04:25,000 --> 00:04:29,040 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 89 00:04:29,120 --> 00:04:31,680 Speaker 2: us throughout the day for the latest roundup of companies 90 00:04:31,760 --> 00:04:34,880 Speaker 2: making news on Wall Street and for the latest market 91 00:04:34,880 --> 00:04:39,360 Speaker 2: moving headlines. 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